Kellogg Slides on Profit Warning

By Avi Salzman

Kellogg (K) stock is down 4.8% this morning after the company posted weak first quarter earnings and told investors that its full-year results will be hurt by weakness in the U.S. and Europe.

Kellogg earned 95 cents per share, 4 cents below expectations. The company said it now expects operating earnings to fall 2% to 4%, down from prior projections that profits would stay flat or rise slightly.

“We are obviously disappointed with the performance of the Company in the first quarter of 2012,” saidKellogg CEO John Bryant. “We faced more significant challenges in both Europe and in some categories in the U.S. than we expected. We have recognized and are addressing these issues, and have provided revised guidance that allows us to continue to invest in the business. This investment is at the core of our operating principles, it’s the right thing to do for the health of the business, and it will help drive future growth.”

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APRIL 23, 2012 5:52 P.M.

j wrote:

All the Cereal Co's will go down. It's called GREED!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! The Chutzpah to charge $4-5 a box of cereal. We are in a DEPRESSION and people will eat cheaper cereals or not at all.

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